Blog: Pilgrim's signals more cuts in US meat
Dean Best | 12 March 2008
So, more rationalization in the US meat industry. This year, we have already had Tyson Foods announce plans to cut its beef operations and Smithfield Foods sell off its own beef business to focus on pork.
Brazil-based meat giant JBS, the buyer of the Smithfield business, has played a key role in the consolidation of the sector, with the acquisition of another US firm, National Beef Packing Co.
Today (12 March), we saw poultry giant Pilgrim’s Pride unveil plans to wield the axe and close a chicken processing complex and six of its 13 distribution centres in the US.
Like Tyson, Pilgrim’s Pride is looking to revive margins hit by the soaring costs of corn.
However, recently-appointed president and CEO Clint Rivers saved most of his ire for Washington, blaming the US government's "ill-advised policy" to subsidise ethanol production for the soaring cost of corn.
News of Pilgrim Pride’s cuts sent shares in other US poultry groups soaring. Wall Street sees rationalisation as vital in improving industry margins.
However, as Rivers warned, further cuts in the poultry industry are inevitable as processors are forced to readjust to food inflation and weakening demand.
All of which means more job cuts in one of the key food sectors in the US.
An update on Amazon's plans for the grocery sector. The usually reticent retailer has this week poured cold water on claims it has plans for 2,000 physical grocery stores....
Ask any FMCG executive to list the trends shaking up the sector and digital and e-commerce will be pretty high on the list. Drill down into that and Amazon will be one of the subjects in the digital s...
Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...
- The key questions for digital strategists in 2017
- Unilever 2016 investor day - the top takeaways
- Wessanen's move for Spain's Biogran - analysis
- Burger King, Jollibee: foodservice focus, Nov 2016
- Have food promotions reached tipping point?
- General Mills jobs to go in business revamp
- Verlinvest, China Resources invest in Oatly
- B&G acquires pasta sauce group Victoria Fine Foods
- Tyson sets up US$150m investment fund
- Japan's Nagatanien buys Chaucer Food Group